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Soft Landing

All articles tagged with #soft landing

finance1 year ago

"Investors Confident in Soft Landing, Geopolitics Now Top Market Risk"

Investors are increasingly confident in a "soft landing" for the global economy, where inflation decreases without high interest rates causing economic turmoil. Bank of America's July Global Fund Manager Survey shows 68% of respondents expect this outcome, the highest since January 2024. Geopolitical conflict has overtaken inflation as the top market risk. Positive CPI data and expectations of Federal Reserve rate cuts have fueled a stock market rally, particularly in interest-rate-sensitive sectors like Real Estate and Industrials. The Russell 2000 has notably outperformed the S&P 500, indicating a significant shift in investor sentiment.

via Yahoo Finance|
#federal-reserve#finance#inflation
economy1 year ago

US Economy on Track for Soft Landing Amid Uncertainty

Recent data suggests the US economy is on track for a soft landing, avoiding a recession. Indicators such as cooling inflation and a stabilizing labor market support this outlook. The Federal Reserve's interest rate decisions have been pivotal in achieving this balance, with expectations of potential rate cuts later this year. Experts believe the economy is transitioning to a more normal state, with growth slowing but not collapsing, and inflation trending lower.

via Business Insider|
#economy#federal-reserve#inflation
finance1 year ago

"JPMorgan CEO Dimon Optimistic About Market Sentiment and AI Advancements"

JPMorgan Chase CEO Jamie Dimon expressed cautious optimism about improving market sentiment for equities and mergers and acquisitions, while maintaining a wary outlook on the economy, casting doubt on the likelihood of a soft landing. He welcomed regulatory scrutiny of private market participants and commented on the pending Capital One-Discover merger, expressing concerns about potential unfair advantages in the debit network.

via Fox Business|
#economy#finance#jamie-dimon
economics1 year ago

"Unleashing Productivity: The Key to Sustaining Economic Growth"

The US is experiencing a historic economic event as inflation returns to normal without a recession, possibly due to a surge in productivity growth. Last year's strong productivity allowed for wage gains without significant consumer cost increases, contributing to a robust economy without stoking inflation. The reasons for this productivity growth include the potential impact of generative artificial intelligence, companies becoming more efficient in anticipation of a recession, and cost-saving measures. Federal Reserve officials consider productivity before making policy decisions, but measuring productivity in real time is challenging, especially in a services-based economy. While last year's productivity boom may have contributed to a soft landing, it remains to be seen if it represents a transformative shift in the US economy.

via CNN|
#economics#federal-reserve#inflation
global-economy2 years ago

"2024 Economic Forecast: Navigating Global Threats and Opportunities"

As global leaders convene in Davos, the global economy in 2024 is expected to experience a soft landing with anticipated interest-rate cuts to bolster growth and markets worldwide. However, potential threats loom, including the impact of the Houthis, hyperinflation, and other risks stemming from years of conflict, pandemic, and financial instability.

via Bloomberg|
#davos#economic-risks#global-economy
economy2 years ago

"Richmond Fed's Barkin Balances Soft Landing Hopes with Rate Hike Realities"

A Federal Reserve official reflects on the economic progress made in the past year, noting a significant decrease in inflation and a resilient economy despite aggressive monetary policy actions, including raising the federal funds rate and shrinking the balance sheet. The official remains cautious about the potential for a "soft landing," where inflation returns to target levels without harming the economy, but acknowledges risks such as economic slowdown, unexpected shocks, persistent inflation in certain sectors, and the need for possible further rate hikes. The official emphasizes the importance of the Fed's credibility and the need to maintain the 2 percent inflation target, while also highlighting the economy's resilience and preparedness for a potential slowdown.

via Federal Reserve Bank of Richmond|
#economic-outlook#economy#federal-reserve
economy2 years ago

The U.S. Economy: Navigating Towards a Soft Landing

Economists are now predicting a "soft landing" for the U.S. economy, a term used to describe a period of economic stability with moderate growth and low inflation. This is a significant shift from earlier predictions of a recession due to interest rate hikes and signs of reduced spending. The job market is expected to remain relatively stable, with a slight increase in the unemployment rate. Inflation is projected to continue cooling, which could improve consumers' standard of living. However, the possibility of a recession still exists, and some economists are predicting a mild recession in the second half of 2024.

via CBS News|
#economy#federal-reserve#inflation
economy2 years ago

Fed's Soft Landing: Investors Embrace Slower Economy and Stable Unemployment

The Federal Reserve's new forecasts, which include a further decline in inflation, no sharp rise in unemployment, a moderation in economic growth, and a projected 0.75% reduction in interest rates next year, have sparked investor enthusiasm. The Fed's outlook suggests a "soft landing" for the US economy, with lower interest rates without the negative effects of a downturn. The Dow Jones Industrial Average closed at a record high, small-cap stocks rose over 3%, and the Nasdaq Composite is up 40% for the year. Even bonds rallied, with the yield on 10-year Treasury notes continuing to decline.

via Yahoo Finance|
#economic-growth#economy#federal-reserve
economy2 years ago

Navigating the Bumpy Road: Assessing the Fed's Soft Landing Strategy

The Federal Reserve, under the leadership of Jerome Powell, appears to be on track for a soft landing, successfully lowering inflation without causing a recession. Inflation has come down notably in recent months, while growth remains solid and consumers continue to spend. The labor market has also balanced without a significant increase in unemployment, and supply chains have healed, easing shortages. The Fed aims to keep interest rates high enough to control inflation without hindering economic growth. If successful, this would be a significant achievement for Powell and the Fed, given historical challenges in managing inflation. However, uncertainties remain, and the Fed will need to carefully navigate future economic conditions to ensure a smooth landing.

via The New York Times|
#economy#federal-reserve#inflation
economy2 years ago

"Federal Reserve's Rate Cuts Expected in 2024 with Potential Soft Landing, CNBC Survey Reveals"

According to the CNBC Fed Survey, respondents predict that the Federal Reserve will begin rate cuts in mid-2024, but not as aggressively as markets have priced in. The average forecast is for about 85 basis points of cuts next year, lower than the 120 basis points priced into futures markets. Respondents also increased the probability of a soft landing and lowered the chance of a recession in the next year. However, they expect unemployment to rise and GDP growth to be below potential. Inflation is forecasted to decline, and there is a wide range of views on when the Fed will end quantitative tightening. The S&P is expected to rise above 5,000 by the end of 2025, but respondents see only modest gains in the near term.

via CNBC|
#economic-forecast#economy#federal-reserve
economy2 years ago

"The Federal Reserve's Evolving Interest Rate Strategy: Implications for You"

The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, signaling a potential soft landing for the economy. While there are concerns about a mild recession, recent signs suggest the US economy has been more resilient than expected. If the central bank can achieve its 2% inflation target without causing a sharp slowdown, it could lead to a "Goldilocks" scenario with steady growth, lower borrowing costs, and a strong job market. However, some experts caution that the recent rally in stocks and bonds may not be sustainable, and a rate cut could be a response to a slowing economy and rising unemployment. The job market is already showing signs of slowing, and economists haven't ruled out a recession in the future.

via CNBC|
#economy#federal-reserve#inflation
economy2 years ago

Navigating the US Economy: From Soft Landing to Uncertain Runway

The U.S. jobs market exceeded expectations in November, with nonfarm payrolls rising by 199,000 and the unemployment rate dropping to 3.7%. Average hourly earnings also increased more than anticipated. Inflation expectations among consumers have plunged, with the University of Michigan consumer sentiment survey showing a significant drop in one-year inflation rate expectations. This, along with a strong jobs report, has boosted market optimism for a "soft landing" scenario. Additionally, China's consumer price index fell sharply in November, while producer prices also dropped. Investors will closely watch upcoming inflation reports and the Federal Reserve's final meeting of the year for further insights into the economic outlook.

via CNBC|
#consumer-sentiment#economy#inflation-expectations
economy2 years ago

Navigating the Soft Landing: Implications for America's Economy and Investors

The solid hiring revealed in the November jobs report has raised hopes for a "soft landing" for the U.S. economy next year, avoiding a recession. A soft landing would involve slower economic growth, moderate job growth, easing inflation, and slightly higher borrowing costs. In contrast, a recession would result in job cuts, faster inflation decline, lower borrowing costs, and falling corporate profits. The Federal Reserve's ability to manage interest rates and inflation will play a crucial role in determining the outcome.

via The Associated Press|
#economy#inflation#interest-rates